Capacitor Bank Market Growth Analysis | 2023-2028

Market Highlights

The Capacitor Bank Market was estimated at US$ 2.39 billion in 2022 and is expected to grow at a CAGR of 4.3% during 2023-2028 to reach US$ 3.1 billion in 2028.

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What is a Capacitor Bank?

A capacitor bank is an electrical component used to enhance the efficiency of power systems. It comprises multiple capacitors connected in parallel, designed to store and discharge electrical energy as needed. The primary purpose of a capacitor bank is power factor correction. In power systems, reactive power is required for devices like motors and transformers but doesn't perform useful work. Low power factors with excessive reactive power can lead to energy inefficiency and losses. Capacitor banks counteract this by supplying reactive power to balance the system, thus improving the power factor and reducing energy wastage. These banks are essential for maintaining stable and efficient electrical distribution, particularly in industrial and commercial settings.

Market Drivers

The demand for capacitor banks is because of the soaring demand for electricity and the increased focus of the regulatory board and authorities to reduce line losses. This equipment also helps in increasing the overall power factor. In addition, capacitor banks are in very high demand as they help improve the functioning and efficiency of the supply systems as well as provide voltage stability during extreme loads.

Segments Analysis

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By Voltage Type

The capacitor bank market is segmented into low [<10 kV], medium [10 kV - 69 kV], and high [>69 kV]. Among these voltages, the medium voltage segment is estimated to account for a high share of the market during the forecast period. This is mainly due to the growing demand for power factor conversion technologies across industrial, commercial, and renewable systems with medium voltage characteristics. These units can be installed across both outdoor and indoor substations for power factor correction, power loss reduction, and voltage support. These capacitor banks can effectually reduce the power factor penalties, which fuel their market demand. Therefore, there is a significantly high demand for medium-voltage capacitor banks currently.

By Type

The market is segmented into open-air substations, metal-enclosed substations, pole-mounted, and others. Among these types, the open-air substation is expected to gain the maximum traction in the market, over the forecast period. They are the most commonly used systems, which are deployed across utility and industrial facilities to reduce power losses and improve power quality. Also, there is an increasing demand for open-air substations primarily from the renewable sector, which will help boost their market growth in the forthcoming years.

By Application Type

The market is segmented into power factor correction, harmonic filter, voltage regulation, renewable integration, industrial application, data centers, and others. Among these applications, the power factor correction segment is expected to gain the maximum traction in the market over the forecast period. This is because most of the capacitor banks are deployed across the utilities, to enhance or correct the power factor. Moreover, the installation of a power factor correction system offers several benefits such as improved grid voltage, increased system capability, lower power losses, and reduced utility bills.

Regional Analysis

In terms of regions, the market is segmented into North America, Europe, Asia Pacific, and Rest of the world. Among these regions, Asia-Pacific is expected to be dominant throughout the forecast period. The market growth in this region is majorly attributed to the increasing investments towards the electrification of the utility networks and industrial developments. Also, the emerging economies in the region such as China, Indonesia, and India will drive the regional market growth as a result of the increasing investments and upgrade of electrical infrastructure and power capacities.

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Key Players

Some of the key players in the capacitor bank market are-

• Aener Energía
• Alpes Technologies
• American Superconductor
• ARTECHE
• circutor.com
• Eaton
• GE
• Hitachi ABB
• Schneider Electric
• Siemens

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data. We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Customization Option

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players).
• SWOT analysis of key players (up to 3 players).

Market Segmentation

• Current market segmentation of any one of the product types by application type.  

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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